The concept of financial wellness has been gaining momentum over the past few years in the UK – but what does it mean for financial advice?
Financial wellness and the role of advice
Susie Logan, Standard Life Brand and Marketing Director examines what is meant by financial wellness and the opportunities it offers for financial advice.
The concept of financial wellness has been gaining momentum over the past few years in the UK.
But what is financial wellness? It’s not about affluence or lack of wealth. It’s about people feeling in control of their finances and that they have made the right choices with it.
The current state of financial wellness in the UK
Some facts and figures about the current state of financial wellness in the UK paint a stark picture.
For example, 35% of the public is reported to be stressed, and 20% depressed, because of financial worries. Furthermore, 15% of people are over-indebted – including 5.8% of those in the highest income decile - and yet only 6% have accessed advice.
These are just a few factors that contribute to the need for people to seek financial advice.
Technology is a driving force behind how the industry can evolve
A significant challenge for advice is managing relationships at scale. This is where technology can excel and be harnessed by firms to:
• Optimise investment management processes to deal with complex client requirements.
• Engage clients with an ‘always on’ communication strategy based on insight and data.
• Streamline processes and increase firm capacity
Making the most of the opportunities financial wellness offers
It’s important we know the starting point of financial wellness in the UK in order to work together to make a difference.
And we’re playing our part by investing in our technology and support services to help enable the advice industry to increase financial wellness levels across the UK.
Standard Life accepts no responsibility for advice that may be formulated on the basis of this information.
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The views expressed in this article should not be regarded as financial advice.
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